Summary of Extreme Networks Investor Day Company Overview - **Company**: Extreme Networks (NasdaqGS:EXTR) - **Event**: 2025 Investor Day held on November 10, 2025 - **Public Status**: Company has been public for over 25 years since 1999 [1] Key Industry Insights - **Networking Industry**: The networking sector is experiencing growth and innovation, with a shift towards cloud and AI technologies [5][6] - **Market Dynamics**: 80% of S&P 500 companies reported good results, yet Extreme's stock fell 20% despite beating expectations, indicating market volatility [6] - **Competitive Landscape**: Competitors are creating tailwinds for Extreme, allowing it to gain market share [13][14] Financial Performance - **Growth Metrics**: - 15% year-over-year growth in the last quarter [34] - Projected double-digit product growth and overall revenue growth [19] - Earnings growth expected in the 20% range over the next five years [19] - **Annual Recurring Revenue (ARR)**: ARR is growing at a faster rate than overall revenue [34] Technology Differentiation - **Fabric Technology**: - Fabric technology is central to Extreme's differentiation, allowing seamless integration across various environments [51][59] - 90% less operational complexity compared to traditional IP Fabric [59] - **Wi-Fi 7 Adoption**: - Wi-Fi 7 constitutes 20% of the Wi-Fi business and is expected to drive a wireless refresh due to pent-up demand [15] - Transition to Wi-Fi 7 is anticipated to be more robust than previous generations [60] Strategic Initiatives - **AI and Platformization**: - Emphasis on AI integration and the development of Platform One to enhance service delivery and customer experience [29][30] - AI is seen as a key driver for automation and improved visibility in networking solutions [29] - **Customer Engagement**: - Focus on building relationships with larger customers, including government and enterprise sectors [18][19] - Success with large customers leads to increased brand recognition and further opportunities [19] Leadership and Team Development - **New Executives**: Introduction of new team members in key roles, including: - Nabil as President of AI platforms [7] - Monica Kumar as Chief Marketing Officer [9] - Anisha Vaswani as Chief Information Officer [10] - **Team Execution**: The quality of execution and collaboration among the team is highlighted as a significant strength [11] Market Opportunities - **Sector Penetration**: - Active engagement with various sectors including government, education, healthcare, and retail [15] - Notable projects include partnerships with the Japanese government and Kroger, showcasing Extreme's capabilities in complex environments [18][27] - **Emerging Trends**: - Increasing demand for cloud flexibility and data sovereignty among customers [27][55] - The need for robust cybersecurity measures and interoperability in complex networking environments [39][42] Conclusion - **Future Outlook**: Extreme Networks is positioned for continued growth with a strong focus on technology differentiation, customer engagement, and market expansion. The company aims to leverage its unique capabilities in fabric technology and AI to capture more market share and enhance customer experiences [34][56]

Stan Kovler SVP, Finance and Corporate Development Investor Day Welcome to 1 Disclaimer Non - GAAP Financial Measures Forward - Looking Statements This presentation contains forward - looking statements including statements regarding our business outlook; future operating and financial metrics and results; market conditions and global demand; customer adoption of our technologies, products and solutions; our product roadmap and innovation priorities; our go - to - market execution; and our ability to compet ...

skis. I don't think so. >> A lot of it comes back to the depreciation of GPUs.>> Exactly. >> Which you can have a debate about for I don't know how long, you know. Is it 5 years. Is it 7 years. Is it two years.>> Well, at 40 it was a good debate. At 11, I don't know. But it does matter.We have the most important guest tomorrow. Michael straight shoes and he's got to put a tie on the t-shirt. It just doesn't work for him.That's a huge signal tonight. And let's get the opening bell here in the CNBC realtime e ...

Market Overview - The total addressable market (TAM) for networking solutions exceeded $42 billion in 2024, projected to grow at a 7% CAGR, reaching $59 billion by 2029[144]. - Cloud-managed networking solutions are expected to grow at a CAGR of approximately 15% through 2029, with AI Networking for the Campus forecasted to grow at a 72% CAGR over the next five years[144]. - Extreme's cloud networking segment is estimated to be a $15 billion market, growing at 15% annually over the next five years[147]. Product and Service Innovations - Extreme Platform ONE, launched in July 2025, integrates networking, security, and AI solutions to reduce complexity for enterprises[135][146]. - The company aims to deliver significant productivity gains for IT teams through AI-powered automation, improving agility and responsiveness[140][141]. - AI-driven insights and automation are key features of Extreme Platform ONE, allowing real-time adaptation to bandwidth spikes and security threats[147]. - The company is focused on simplifying and automating network management through fabric technologies, enhancing operational efficiency[147]. - The company offers flexible consumption options, including public, private, and hybrid cloud solutions, to meet diverse customer needs[147]. - ExtremeCloud IQ conforms to ISO/IEC standards for data privacy and is CSA STAR certified, ensuring robust security for cloud services[147]. - The company emphasizes a unified operations dashboard for real-time visibility into network usage, renewals, and support coverage[148]. Financial Performance - Net revenues for Q1 fiscal 2026 reached $310.2 million, a 15.2% increase from $269.2 million in Q1 fiscal 2025[154]. - Product revenues increased by $31.8 million or 19.6% to $194.0 million, driven by strong demand and higher bookings[151]. - Subscription and support revenues rose by $9.3 million or 8.7% to $116.2 million, attributed to increased adoption of cloud network management solutions[152]. - Total gross profit was $188.0 million, representing a gross margin of 60.6%, down from 63.0% in the prior year[154]. - Operating income improved to $11.3 million compared to an operating loss of $4.7 million in Q1 fiscal 2025[154]. Cash Flow and Expenses - Cash and cash equivalents decreased to $209.0 million as of September 30, 2025, down from $231.7 million as of June 30, 2025[154]. - Research and development expenses increased by $3.3 million or 6.1% to $57.8 million, primarily due to higher personnel costs[159]. - Sales and marketing expenses rose by $7.5 million or 9.3% to $88.9 million, driven by increased personnel and sales commission costs[161]. - General and administrative expenses decreased by $7.4 million or 20.3% to $29.2 million, mainly due to lower legal costs[163]. - Interest income increased to $1.2 million from $0.8 million, reflecting higher interest earned on cash accounts[167]. - The company reported a net cash used in operating activities of $14.0 million for the three months ended September 30, 2025, compared to a net cash provided of $18.6 million for the same period in 2024[181]. Shareholder Actions and Commitments - The company repurchased 577,281 shares at a total cost of $12.0 million during the three months ended September 30, 2025, with an average price of $20.79 per share[175]. - The company had $199.4 million of debt outstanding as of September 30, 2025, with quarterly installments due through fiscal year 2028[189]. - The company had non-cancelable commitments to purchase $48.8 million of inventory as of September 30, 2025[190]. - The company had $188.0 million available under the 2025 Repurchase Program as of September 30, 2025[175]. - The average daily outstanding debt amount for the quarter ended September 30, 2025, was $188.9 million, with a high of $205.0 million and a low of $180.0 million[194]. - The company recognized foreign currency transaction net gains of $0.9 million for the three months ended September 30, 2025[197]. - The company had contractual commitments of $15.1 million due through fiscal year 2027 as of September 30, 2025[191].

Group 1 - The article does not provide any specific content related to a company or industry [1]

Group 1 - The article does not provide any specific content or key points related to a company or industry [1]

Company Performance - Extreme Networks reported quarterly earnings of $0.22 per share, matching the Zacks Consensus Estimate, and an increase from $0.17 per share a year ago [1] - The company posted revenues of $310.25 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 4.90%, compared to $269.2 million in the same quarter last year [2] - Over the last four quarters, Extreme Networks has surpassed consensus EPS estimates three times and topped revenue estimates four times [2] Stock Movement and Outlook - Extreme Networks shares have increased approximately 27.1% since the beginning of the year, outperforming the S&P 500's gain of 17.2% [3] - The company's earnings outlook is crucial for assessing future stock performance, with current consensus EPS estimates at $0.25 for the coming quarter and $1.02 for the current fiscal year [4][7] - The estimate revisions trend for Extreme Networks was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Computer - Networking industry, to which Extreme Networks belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, which may impact stock performance [8] - Cisco Systems, a competitor in the same industry, is expected to report quarterly earnings of $0.98 per share, reflecting a year-over-year change of +7.7%, with revenues projected at $14.78 billion, up 6.8% from the previous year [9]

Financial Data and Key Metrics Changes - Revenue reached $310 million, up 15% year-over-year, marking the sixth consecutive quarter of revenue growth and the third straight quarter of double-digit year-over-year increases [4][12] - Earnings per share (EPS) was $0.22, up 29% from $0.17 in the prior year [12] - SaaS Annual Recurring Revenue (ARR) grew 24% year-over-year to $216 million [4][12] - Total bookings increased by 21% year-over-year, reflecting strong customer demand [13] Business Line Data and Key Metrics Changes - Product revenue was $194 million, growing 20% year-over-year and achieving six sequential quarters of product revenue growth [13] - Subscription and support revenue totaled $116 million, up 9% year-over-year, with total recurring revenue growing 8% year-over-year [14] - Non-GAAP gross margin was 61.3%, impacted by industry-wide increases in component costs [15] Market Data and Key Metrics Changes - Strong performance was noted in Asia-Pacific and EMEA regions, with significant new customer wins [14] - 36 customers spent over $1 million with the company in the quarter, up from 34 last quarter and 27 in the prior year [14] Company Strategy and Development Direction - The company is focused on expanding its footprint in government sectors and enhancing its technology offerings, particularly with Extreme Fabric and Extreme Platform One [6][9] - The introduction of Extreme Platform One is expected to drive future growth, with positive customer feedback noted [5][10] - The company aims to achieve a revenue growth rate of 10% for the full fiscal year 2026, with a focus on large opportunities and increasing market share [11][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in recovering gross margins through price increases and operational efficiencies [15][20] - The company anticipates continued growth in SaaS ARR and recurring revenue, with a target of 35% of total revenue from recurring sources in fiscal 2026 [17] - Management highlighted the competitive landscape, noting opportunities arising from disruptions among larger competitors [27][29] Other Important Information - The company has been recognized for its corporate responsibility efforts, reducing emissions by 34% since 2021 [11] - The company plans to host an AI Summit to discuss future innovations and strategies [10] Q&A Session Summary Question: Can you talk more about component price increases impacting gross margins? - Management acknowledged rising prices in memory and optics, indicating plans for price increases to recover costs [20][21] Question: What is the impact of the federal government shutdown on your business? - Management stated that the shutdown has had little to no impact, with opportunities opening up in the federal market due to recent certifications [24][25] Question: How is the competitive environment with Cisco and Juniper? - Management noted confusion in the market due to acquisitions and changes in partner programs, presenting opportunities for the company [27][29] Question: Can you provide metrics on Extreme Platform One's commercial introduction? - Management indicated that it is early for metrics but noted high adoption and excitement about the platform [36][38] Question: What are the long-term gross margin targets? - Management maintained a long-term target of 64% to 66% gross margins, with expectations for recovery from current levels [62][65]

Financial Data and Key Metrics Changes - Revenue reached $310 million, up 15% year-over-year, marking the sixth consecutive quarter of revenue growth and the third straight quarter of double-digit year-over-year increases [4][12] - Earnings per share (EPS) was $0.22, up 29% from $0.17 in the prior year [12] - SaaS Annual Recurring Revenue (ARR) grew 24% year-over-year to $216 million [4][12] - Total bookings increased by 21% year-over-year, reflecting strong customer demand [13] Business Line Data and Key Metrics Changes - Product revenue was $194 million, growing 20% year-over-year and achieving six consecutive quarters of product revenue growth [13] - Subscription and support revenue totaled $116 million, up 9% year-over-year, with total recurring revenue growing 8% year-over-year, representing 36% of total revenue [14] - Non-GAAP gross margin was 61.3%, impacted by industry-wide increases in component costs [15] Market Data and Key Metrics Changes - Strong performance was noted in Asia-Pacific and EMEA regions, with significant new customer wins contributing to growth [14] - 36 customers spent over $1 million with the company in the quarter, up from 34 last quarter and 27 in the prior year [14] Company Strategy and Development Direction - The company is focused on expanding its market share through innovative technology solutions, including Extreme Fabric and Extreme Platform ONE, which leverage AI for enhanced networking capabilities [4][5] - The company aims to achieve a revenue growth target of 10% for the fiscal year 2026, with a strong emphasis on SaaS ARR growth in the low 20% range [11][17] - The company is positioning itself as a strategic alternative to incumbents, particularly in the public sector and hospitality markets [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to recover gross margins through price increases and operational efficiencies [15][20] - The company anticipates continued growth in large opportunities and believes fiscal 2026 will mark an inflection point in its growth trajectory [11] - Management highlighted the competitive landscape, noting confusion among competitors as an opportunity for the company to gain market share [28][70] Other Important Information - The company has been recognized as a leader in the 2025 MarketScape by IDC, highlighting its unique technology and deployment flexibility [5] - The company is committed to corporate responsibility, having reduced emissions by 34% since 2021 and aiming for 50% renewable electricity sourcing [11] Q&A Session Summary Question: Can you talk more about component price increases impacting gross margins? - Management acknowledged rising prices in memory and optics, implementing price increases to recover costs, with expectations to improve gross margins over time [20][21] Question: What is the impact of the federal government shutdown on your business? - Management indicated that the shutdown had little to no impact, with opportunities opening up in the federal market due to recent certifications [25] Question: How is the competitive environment with Cisco and Juniper? - Management noted confusion in the market due to HPE's acquisition of Juniper and Cisco's partner program overhaul, creating opportunities for the company [27][29] Question: What metrics do you have for Extreme Platform ONE's commercial introduction? - Management stated that it is early to present metrics but noted high adoption and excitement about the capabilities of Platform ONE [38][39] Question: What are the long-term gross margin targets? - Management maintained a long-term gross margin target of 64%-66%, with expectations for recovery in the near term [63][66]

Financial Data and Key Metrics Changes - Revenue reached $310 million, up 15% year-over-year, marking the sixth consecutive quarter of revenue growth and the third straight quarter of double-digit year-over-year increases [4][13] - Earnings per share (EPS) was $0.22, up 29% from $0.17 in the prior year [13] - SaaS Annual Recurring Revenue (ARR) grew 24% year-over-year to $216 million [4][14] - Total bookings increased by 21% year-over-year, reflecting strong customer demand [15] Business Line Data and Key Metrics Changes - Product revenue was $194 million, growing 20% year-over-year and achieving six sequential quarters of product revenue growth [15][16] - Total subscription and support revenue was $116 million, up 9% year-over-year [16] - Recurring revenue grew 8% year-over-year, representing 36% of total revenue [16] Market Data and Key Metrics Changes - Strong performance was noted in Asia-Pacific and EMEA regions, with significant new customer wins [16] - 36 customers spent over $1 million with the company in the quarter, up from 34 last quarter and 27 in the prior year [16] Company Strategy and Development Direction - The company is focusing on technology innovation, with strong interest in the new Extreme Platform One and Wi-Fi 7 solutions [5][10] - The company aims to expand its footprint in government sectors and enhance its offerings with new sovereign cloud capabilities [6][7] - The company is positioning itself as a strategic alternative to incumbents, particularly in public sector and hospitality markets [16] Management's Comments on Operating Environment and Future Outlook - Management expects revenue growth to accelerate to 10% for the remainder of fiscal 2026, driven by large opportunities and increasing win rates [12] - The company is optimistic about its growth trajectory, with expectations of continued strong performance in SaaS ARR and new commercial models [12][39] Other Important Information - Non-GAAP gross margin was 61.3%, impacted by industry-wide increases in component costs, but expected to recover over time [17] - The company has implemented price increases to mitigate higher costs and drive margin recovery [17][22] Q&A Session Summary Question: Can you talk more about component price increases affecting gross margins? - Management acknowledged rising prices in memory and optics and mentioned plans for a mid-single-digit price increase to recover costs [21][22] Question: What is the impact of the federal government shutdown on the business? - Management indicated that the shutdown had little to no impact on their business, with opportunities opening up in the federal market due to recent certifications [24][25] Question: How is the competitive environment with Cisco and Juniper? - Management noted confusion in the market due to HPE's acquisition of Juniper and Cisco's partner program overhaul, creating opportunities for the company [26][27] Question: What is the status of Extreme Platform One's commercial introduction? - Management reported high adoption and excitement about the capabilities of Extreme Platform One, with metrics expected to be shared in future updates [32][34] Question: What are the long-term gross margin targets? - Management maintained a long-term gross margin target of 64% to 66%, with expectations of recovery from current tactical challenges [50][52]